Austal shares climbed again this week, extending a run that has now added more than 30% since July.

The catalyst for this? The possibility that a second buyer has appeared for the company’s American shipyard.

Why Austal shares are moving

Austal Ltd (ASX: ASB) confirmed on Monday that it had held an initial discussion with Wildcat Infrastructure, a United States investment firm, after media reports identified it as a potential buyer of Austal USA.

The company was clear that it had not received a formal offer.

The reason the market reacted at all is that a bidder already exists.

Hanwha Defence USA lodged a non-binding, indicative proposal in August, and the board granted it a four-week due diligence window.

A second interested party changes the negotiating dynamic significantly for Austal.

What Hanwha has actually offered

Hanwha’s proposal values Austal USA at between US$1.05 billion and US$1.2 billion on an enterprise value basis, cash and debt free.

It is an offer for the shares in the Austal USA holding entities only.

It explicitly excludes the listed shares in Austal Limited, the Australasian operations across Australia, the Philippines and Vietnam, and the Strategic Shipbuilding Agreement with the Commonwealth.

Completion would require approval from CFIUS, the Defense Counterintelligence and Security Agency, and United States antitrust regulators.

The board set out its thinking in the announcement.

The Austal Board and its advisers have carefully assessed the Proposal and determined that it merits further evaluation, approving Hanwha to undertake due diligence related to Austal USA to improve the certainty of any proposal.

Hanwha is already Austal’s largest shareholder with 19.9% of the register, a stake approved by the Treasurer in December 2025 with conditions attached.

The FY26 result behind the bid

Austal’s full-year numbers explain why the American business is the one on the block.

Revenue rose 11% to $2.03 billion and the order book reached a record $16.5 billion.

The Australasian division produced record earnings before interest and tax of $85.3 million, up 137%.

Austal USA went the other way, posting a $202.8 million EBIT loss after provisions on legacy Navy programs, which dragged the group to a statutory loss of $53.6 million.

Chief executive Paddy Gregg described the Australian side as follows:

Outside of the US, never before has the Australian business been in such an enviable position, with a long-term order book and a strategic agreement that will provide decades of stability and growth.

What a sale would mean for Austal shares

Austal’s whole market capitalisation is roughly $1.8 billion.

The indicative value placed on Austal USA alone is between A$1.5 billion and A$1.7 billion.

If a sale completed near that range, shareholders would be left holding a debt-free Australian shipbuilder with record earnings and a decade of committed work, plus a very large pile of cash.

However, investors should nonetheless adopt a degree of caution.

Hanwha’s proposal is non-binding, Wildcat has made no offer, and United States regulatory approval is not a formality.

Foolish takeaway

Austal shares are still down over twelve months, which tells you how much damage the American contracts did.

A competitive process for Austal USA would be the fastest available route to recovering some of that.

Ultimately, the Australian business is performing well enough to justify holding whatever happens, and that is the better reason to own Austal shares today.

The post Austal shares are surging. Is a bidding war brewing? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Ten years is a long time in the share market. Companies rise and fall, technology changes, and entire industries can look very different by the end of a decade.

That is why I think ASX exchange traded funds (ETFs) can be such a good fit for long-term investors.

They allow investors to back markets, investment styles, and major trends without needing every individual stock pick to work out.

With that in mind, here are three ASX ETFs that I think could be excellent buy and hold options for the next 10 years.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF could be a strong option for investors who want long-term exposure to some of the world’s leading growth companies.

The fund tracks 100 of the largest non-financial companies listed on the Nasdaq exchange. That means investors gain exposure to businesses involved in artificial intelligence, cloud computing, software, semiconductors, ecommerce, digital advertising, streaming, and consumer technology.

I think technology is likely to keep playing a larger role in how businesses operate and how people work, shop, communicate, and spend their time over the next decade. The Betashares Nasdaq 100 ETF gives investors a way to own a collection of businesses at the centre of that change, such as Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

The Vanguard All-World ex-US Shares Index ETF is another ASX ETF to consider for the long term.

This fund gives investors exposure to a large group of companies outside the United States, including businesses across Europe, Japan, Asia, emerging markets, and other parts of the world. That can be valuable for investors who already have plenty of US exposure.

After all, the next decade will not necessarily be dominated by one country or one market.

This ASX ETF allows investors to participate if growth comes from areas such as Asian consumer spending, European industrials, Japanese companies, emerging market financials, or global healthcare. It is a simple way to spread investments across a very large part of the global economy.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund takes a selective approach to buying US shares. Rather than simply buying the biggest companies, it focuses on businesses believed to have sustainable competitive advantages and attractive valuations.

Those advantages could come from strong brands, cost leadership, intellectual property, network effects, or customers that are difficult to lose.

This could be a good thing when investing over a 10-year period. Businesses with genuine competitive advantages have a better chance of protecting profits and compounding earnings for many years.

The valuation discipline is important as well, because even a great company can be a poor investment if investors pay far too much for it.

For investors looking for a more selective way to own quality US businesses, I think the VanEck Morningstar Wide Moat ETF could be a strong long-term choice.

The post 3 of the best ASX ETFs to buy and hold for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Microsoft, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The latest property data from Cotality has indicated that Australian home values continue to fall. 

Cotality’s national Home Value Index fell 0.9% in August, marking a fifth consecutive month of decline and taking national home values 3.6% below the market peak recorded in March.

Property snapshot

According to the report, home value declines spread sharply across Australia’s housing market through winter, with home values falling across 93% of capital city suburbs. Every capital city except Darwin has recorded a decline over the past three months.

Tim Lawless, Cotality’s Research Director, said the latest figures show the downturn is no longer confined to select markets or higher-value segments. 

What started as a more concentrated easing across higher-value segments has now become a much more generalised softening, with the vast majority of capital city suburbs recording some level of decline.

The proportion of capital city suburbs recording a fall in home values more than doubled through winter, rising from 45.8% in autumn to 93%, highlighting a much broader weakening in housing conditions.

How does this impact real estate shares?

As investors look at these numbers, the important distinction is that falling Australian house prices do not automatically mean all ASX property stocks will suffer.

However, there are some important considerations. 

Firstly, residential developers – these are likely the most vulnerable. 

Companies selling new houses/land can be hit by lower selling prices, slower presales, cancellations and weaker margins. 

If the housing correction continues, these equities are the ones I would be most cautious about.

Looking at REITs, falling residential house prices don’t directly determine the value of office, industrial, logistics, retail or healthcare property. 

For REITs, interest rates, bond yields, debt costs, occupancy and rental growth can matter considerably more. 

Finally, property/infrastructure owners with long leases are potentially relatively defensive.

Retail, logistics, healthcare and other assets with strong occupancy and contractual rental increases can continue generating cash flow even while residential property falls. 

Why interest rates are the bigger issue 

While investors may focus on dwelling prices, interest rates are the more important issue at hand. 

The housing decline is partly a consequence of higher borrowing costs, so the same monetary tightening that hurts residential property can hurt listed property. 

Higher rates increase REIT financing costs, which can reduce distributions and funds from operations. 

This can push property valuations lower and ultimately weigh on share prices. 

Based on these factors, the ASX real estate shares that could offer defensive profiles are: 

• Goodman Group (ASX: GMG) – Major exposure to logistics and data centres rather than Australian residential property.
• GPT Group (ASX: GPT) – More diversified across office, retail and logistics and less directly exposed to the residential downturn.

The post Home values decline for a 5th straight month – what does it mean for ASX real estate shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.